CBI may reconsider its policy if inflation remains high

22 September 2009
BAGHDAD: An adviser to the Central Bank of Iraq (CBI) on Tuesday said that it may reconsider its monetary policy if inflation rates continue to run high.


"The bank will not change its monetary policy at the time being as it attributes high inflation to the unexpected rise in foodstuff prices, which form 70 percent of consumer expenditure," Madhhar Mohammed Saleh told Aswat al-Iraq news agency.

The rise in foodstuff prices in August, which hit 10.8 percent, was due to external factors, including desertification and drought, Saleh explained.

"If inflation index remains high, the CBI may change interest rates and exchange rates," he added.


© Aswat Aliraq 2009